Everyone has an idea on how to make millions on ebay

Stop now

There are some very simple rules and if you follow them you can make good money, but not millions.

Here we go

Know your product. It is vital that you know what you are selling. I love Psion computers and know them inside out. That way I know what to pay and what the value is on resale. I can even repair and upgrade Psions. This adds more value on resales

If you do not know your product you are doomed to fail.

If you do not know your product research values well before listing.

Know your market. It is very easy to get sucked in to high volume markets but your profit margin is much reduced and you risk the dreaded relist if you do not sell. Smaller nich markets do well.

Persistant relists will reduce your profit margins very quickly.

If you have a listing price of £1.50 and a sale item of £40. 5 relists will cost you £7.50

If you have a listing price of 50p and a sale item of £6. 5 relists will cost you £2.50

You can see the profit loss.

Don`t look for massive profits. Buyers will feel they are being done. A profit of 20% is good. Remember that what every you make, profit is profit.

I have tried and tested many ways of sellling and this is my advice:-

Write a profile of yourself. This will allow buyers to know a little about you and your philsophy as a seller

Low value items should be listed at the 99p start with no reserve or buy me price

Mid value items should be listed with a realistic initial bid but with the price you want as a buy me pric

High value items should be listed in the same way but ensure your start price is realistic for the item

Don`t use reserves as they put people off. state in your ad that the initial price is the lowest you will accept and that there is no reserve. Your initial price should be your reserve pric

Be aware of the reserve trap. most mid value items will atract a reserve of £50. Most ebayers know this and will wait until the last minute to put in a bid of £50. It will also put buyers off as they may be happy to pay £45.

Remember profit is profit and don`t get greedy.

Watch your P&P and ensure it is realistic. Don`t make profits from P&P. Buyers will see through this.

I rarely charge P&P in the UK and it works well. But don`t do this overseas or you will be stung big time.

This bit is a personal issue.

I always leave positive feedback to buyers before they leave feedback for me . They have paid so why wait to give them feedback.

If things go badly you can always leave follow up feedback.

I hope this guide helps